There is currently a huge growth rate in renewable generation in the UK with 8.6 GW of solar capacity installed by December 2015, 15 years ahead of forecasts. Official projections in 2012 suggested that 6.5 GW of solar panel capacity would be connected by 2030. This means that in some regions, particularly the South West, there is little spare network capacity and this in turn means that costs and timescales for connection can be extremely high. Ofgem is therefore calling on electricity distribution network operators (DNOs) to speed up connections, initally by finding new ways to link more generators to the existing network.
Western Power Distribution (WPD) currently has a queue of 7.6 GW of generators waiting to connect, of which around 4.8 GW are solar panel schemes. WPD is reconfiguring part of its grid so that some of the generators in the queue can get quicker connections. In addition WPD is offering to connect some generators, but only if they agree to cut their output on days of the year when there is the highest demand from other generators to use the grid. They will not receive any compensation for this.
“We want DNOs to take creative approaches to speeding up renewable connections” said Ofgem chief executive Dermot Nolan. “They can do this firstly by making best use of their existing grids, as WPD has done. We are also calling on DNOs to enable earlier investment in new capacity where necessary using funding in their price controls. This means that they won’t be adding extra costs onto your bill.”
In some cases DNOs have to find ways of building new capacity further in advance in order to speed up connections. Ofgem has told DNOs to trial schemes where this can be done by only using funding in their price controls and is currently assessing the trial schemes that have been proposed. Ofgem will be providing updates throughout the year on what it can do to support these schemes. It is also asking generators and stakeholders for feedback on whether the DNOs are being proactive enough on tackling the queue for connections.
Ofgem has also published a consultation on getting an electricity connection when the network is constrained. Responses to the consultation will inform Ofgem on whether it should apply financial penalties on DNOs for failing to meet the needs of their connection customers.
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